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Finance minister maintains national debt still appealing even as it clocks 38,716trn/-
By Sylivester Domasa
1st May 201
Finance Minister Saada Mkuya.
Finance Minister Saada Mkuya maintains that Tanzania's national public debt is no cause for concern despite announcing its ballooning to USD19.5billion (about 38,716trn/-) as of the end of March this year.
This is against general consensus among economists who are worried that the debt is growing out of control and placing a huge burden on the current and future taxpayers.
The finance minister released the figure yesterday in Dar es Salaam where she acknowledged that it represents a 4.2 per cent rise from USD18.7billion (27.12trn/-) at the end of March, last year.
Presenting the draft budget for 2015/16 before members of parliament, the minister attributed the changes to increased concessional loan and foreign debt interest arrears.
"Concerns have grown over the amount of debt we are accruing and its potential impact on the East African's second-largest economy," she admitted.
However she maintained that according to international standards, Tanzania local government debt and contingent liabilities are still flexible.
‘In line with the minister's reassurance, only two years ago in 2013 when the debt stood at 20trn/-, the World Bank (WB) said the liability had not reached an alarming point.
However, it must be noted that at that time, the WB also warned over the weight of the burden being too much for the public to shoulder.
Such is the concern of economists here at home who say the decision by the government to keep borrowing yet the national debt has steadily increased over the past few years is burdening the already saddled economy and its people.
That is not the view of the Finance minister who challenges the view and is of the opinion that the debt is still appealing.
"The loans acquired were directed to implement development projects and especially, infrastructures (roads), energy, transport, education and water," she explained.
Last year the Tanzania Coalition on Debt and Development (TCDD) warned over government's extended internal borrowing from local commercial banks which have high interest charges.
TCDD officials said the trend is very dangerous especially when some of the money is used to simply pay civil servants' salaries.
Meanwhile the finance minister also acknowledged yesterday that the Tanzania Shillings Exchange Rate against the US dollar depreciated by 9.9 per cent compared to other international currencies.
Against the Euro and Japanese Yen it depreciated by 26 per cent and 18 per cent respectively.
By comparison, the finance minister said the nation can take consolation in the fact that neighbouring shilling of Uganda and even the South African Rand depreciated by 15 per cent.
She explained that the US dollar gained against the TSH due to reduced exports, decrease of gold prices at the world market and increased demand of USD in external transactions.
SOURCE: THE GUARDIAN
CC: Tized, Mr Rocky, Fixed Point, lyinga, NATA, Chakaza, Elly B, Ablessed, Michelle, KikulachoChako, Emma, EMT, Daudi Mchambuzi, Arushaone, MziziMkavu, Ablessed, afrodenzi, Heaven on Earth, Power to the People, Jasusi, Eiyer, idawa, nguruvi, Mentor, Sikonge, Dingswayo, MANI, tpaul, Bramo, Bulesi Bulldog, Sangarara, MTAZAMO, Erythrocyte, Mag3, Mimibaba, zumbemkuu, Crashwise, amkawewe, Idimi, Ogah, Chakaza, mshana jr, JokaKuu, MWALLA, genekai, PRINCE CROWN, Tuko, Shark, lynxeffect22, samaki2011, MoudyBoka, adolay, Elli, nyabhingi, Janjaweed, S.N.Jilala, MEANDU, Tabby, Candid Scope, Honolulu, August, dyuteromaikota, BONGOLALA, Gefu, Bigirita, Kozo Okamoto, Shark, mirisho pm, Camp 05, Ngoami, Kamakabuzi, jerrytz
By Sylivester Domasa
1st May 201
Finance Minister Saada Mkuya.
Finance Minister Saada Mkuya maintains that Tanzania's national public debt is no cause for concern despite announcing its ballooning to USD19.5billion (about 38,716trn/-) as of the end of March this year.
This is against general consensus among economists who are worried that the debt is growing out of control and placing a huge burden on the current and future taxpayers.
The finance minister released the figure yesterday in Dar es Salaam where she acknowledged that it represents a 4.2 per cent rise from USD18.7billion (27.12trn/-) at the end of March, last year.
Presenting the draft budget for 2015/16 before members of parliament, the minister attributed the changes to increased concessional loan and foreign debt interest arrears.
"Concerns have grown over the amount of debt we are accruing and its potential impact on the East African's second-largest economy," she admitted.
However she maintained that according to international standards, Tanzania local government debt and contingent liabilities are still flexible.
‘In line with the minister's reassurance, only two years ago in 2013 when the debt stood at 20trn/-, the World Bank (WB) said the liability had not reached an alarming point.
However, it must be noted that at that time, the WB also warned over the weight of the burden being too much for the public to shoulder.
Such is the concern of economists here at home who say the decision by the government to keep borrowing yet the national debt has steadily increased over the past few years is burdening the already saddled economy and its people.
That is not the view of the Finance minister who challenges the view and is of the opinion that the debt is still appealing.
"The loans acquired were directed to implement development projects and especially, infrastructures (roads), energy, transport, education and water," she explained.
Last year the Tanzania Coalition on Debt and Development (TCDD) warned over government's extended internal borrowing from local commercial banks which have high interest charges.
TCDD officials said the trend is very dangerous especially when some of the money is used to simply pay civil servants' salaries.
Meanwhile the finance minister also acknowledged yesterday that the Tanzania Shillings Exchange Rate against the US dollar depreciated by 9.9 per cent compared to other international currencies.
Against the Euro and Japanese Yen it depreciated by 26 per cent and 18 per cent respectively.
By comparison, the finance minister said the nation can take consolation in the fact that neighbouring shilling of Uganda and even the South African Rand depreciated by 15 per cent.
She explained that the US dollar gained against the TSH due to reduced exports, decrease of gold prices at the world market and increased demand of USD in external transactions.
SOURCE: THE GUARDIAN
CC: Tized, Mr Rocky, Fixed Point, lyinga, NATA, Chakaza, Elly B, Ablessed, Michelle, KikulachoChako, Emma, EMT, Daudi Mchambuzi, Arushaone, MziziMkavu, Ablessed, afrodenzi, Heaven on Earth, Power to the People, Jasusi, Eiyer, idawa, nguruvi, Mentor, Sikonge, Dingswayo, MANI, tpaul, Bramo, Bulesi Bulldog, Sangarara, MTAZAMO, Erythrocyte, Mag3, Mimibaba, zumbemkuu, Crashwise, amkawewe, Idimi, Ogah, Chakaza, mshana jr, JokaKuu, MWALLA, genekai, PRINCE CROWN, Tuko, Shark, lynxeffect22, samaki2011, MoudyBoka, adolay, Elli, nyabhingi, Janjaweed, S.N.Jilala, MEANDU, Tabby, Candid Scope, Honolulu, August, dyuteromaikota, BONGOLALA, Gefu, Bigirita, Kozo Okamoto, Shark, mirisho pm, Camp 05, Ngoami, Kamakabuzi, jerrytz